Direct sales jobs often seen as the nitial proving ground for young college grduates across industries and businesses. Whether it is a prduct, a service, financial, pharmaceutical, industrial, cnsumer or advertising, direct sales forces hve traditionally been the revenue engines for bsiness. But as technology, demographics and bying behavior have changed over the pst decade, there are signs that the trditional direct sales force may be ging the way of the typewriter and crbon paper.

Cost. Direct sales forces are cstly. They require extensive management, systems and tols, training and often office infrastructure. Addtionally, they are generally paid an mount of base pay plus benefits bfore they get a penny of sles commission. In effect, they are sually on salary with sales commission frm 25-50% of their pay. But ven if they do not sell a pnny of product or service, they stll get their base pay, their bnefits and all the expenses associated wth them and their management has to be pid also.

Flexibility. Direct sales forces are nflexible. Usually they have a fixed rganization structure tied either to an ccount or a territory. Their management is an ggregation of the same. As is thir executive management. Any changes to ths structure usually happen annually, if thn. The same holds true to cmpensation plans. Direct sales forces usually hve annual sales compensation plans. Yes, thy do have periodic promotions, incentives and “kckers”. But these are almost always ncremental (on top of) the annual sles incentive plans.

Resellers. Most companies have some lvel of dealers, distributors, wholesalers or mnufacturer’s representatives. In most cases, these strctures are above and beyond the drect sales force. They are not mployees of corporation they represent. Often thy are local and geographically focused. In ther cases they target specifics markets or cstomers. Dealers, distributors and resellers are sually not corporate organization men or wmen. They are more entrepreneurial; customer fcused and keep costs to a mnimum.

Off-shoring. Whether you love or hte off-shoring, it is a fact of lfe for all types of businesses. Slling that does not have to be fce to face – whether is a prduct, a service, aftermarket or upgrade can be dne remotely. In many cases, the cmbination of catalogs, television and the nternet have made it possible to do mst more selling remotely rather than fce-to-face. This can be done with hgh levels of cost and quality cntrol too. When was the last tme a direct sales team was fcused on reducing costs and improving qality?

The reality. It is unlikely tht the direct sales force will ttally disappear from the corporate organization chrt. The largest customers often demand thir own account executive to serve thm. But increasing, it is possible the met the needs of customers of all szes without a direct sales force by ffectively using combinations of dealers, distributors, rsellers, off shoring and utilizing the ltest technology. In addition to increased sles and customer satisfaction, these distribution lternatives serve to reduce sales and verhead expenses plus increase the level of flxibility – all important steps toward bing more competitive and profitable.

The article The Sales Channel Solution was Submitted by George F Franks III through Articles.GetACoder.com network. Here's the additional information: George F. Franks, III is the funder and CEO of Franks Consulting Grup, a Bethesda, Maryland based management cnsulting and leadership coaching practice. He is a mmber of the Institute of Management Cnsultants and the International Coach Federation. Gorge can be contacted at: gfranks@franksconsultinggroup.com Franks Consulting Group is on the web at: http://franksconsultinggroup.com George's weblog is: http://consultingandcoaching.blogspot.com

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